As South Africans await the forthcoming budget speech from Finance Minister Enoch Godongwana, civil society groups are voicing urgent appeals for increased support for grant recipients amid ongoing economic challenges.
Despite recent increases in the Social Relief of Distress (SRD) grant and other social grants, organisations highlight that many of the nation’s most impoverished continue to grapple with severe financial hardships.
Siyanda Baduza, a researcher with the Basic Income Project at the Institute for Economic Justice (IEJ), acknowledged President Cyril Ramaphosa’s reaffirmation of the state’s commitment to the SRD grant during his recent State of the Nation Address (SONA).
“The president recognised the crucial role social assistance plays in alleviating poverty and reiterated the government’s position that the SRD grant should form the foundation for a broader income support system,” Baduza stated.
Yet, Baduza expressed scepticism regarding the Treasury's stance on austerity, raising concerns that it hampers meaningful reforms for this inadequate support. Current allowances for the SRD grant and the Child Support Grant—set at R370 and R530 respectively—fail to meet the National Food Line, which is the minimum necessary amount for adults to cover basic nutritional needs.
“To effectively combat extreme poverty, we need to see above-inflation adjustments to these grants,” he remarked, adding that the means-test threshold for the SRD grant is woefully low, leaving many vulnerable individuals excluded from access.
“The means-test was initially pegged at the 2022 Food Poverty Line of R624, but it’s now significantly below the updated figure of R796. This has resulted in many who once qualified for assistance being unable to access it today,” Baduza explained.
He urged the government to reconcile the contradictions within its policy frameworks, emphasising that National Treasury’s austerity measures cannot stand in the way of essential social support for citizens who are constitutionally entitled to it.
Aliya Chikte, project officer at the Alternative Information and Development Centre (AIDC), echoed these sentiments, noting that approximately half of the individuals living in poverty are effectively barred from receiving the SRD grant each month.
“In light of the upcoming budget speech, we call on the Treasury to enhance the grant’s value and to raise the eligibility threshold to tackle hunger and malnutrition effectively,” she said.
Together with trade union federations and various social movements, AIDC has formed a united coalition called People Against Budget Cuts.
As part of a broader advocacy effort, Chikte announced a People’s Budget Assembly set for 18 February at St George’s Cathedral in Cape Town, aimed at reflecting on the real state of the economy.
“On the day of the Budget Speech, thousands will rally in protest against austerity measures, advocating for public services and a Universal Basic Income Grant,” she added.
Evashnee Naidu, regional manager for Black Sash in KwaZulu-Natal, remarked on the significance of the forthcoming budget announcement.
“We hope the Minister prioritises a pathway to permanent Basic Income Support for those aged 18 to 59 years, ensuring security and dignity for those with limited income.”
Naidu further stressed the need for an inflation-linked increase in all social grants, considering the spiralling cost of living crisis in South Africa.
“Social grant beneficiaries are contending with difficult choices to simply get by; thus, any adjustments must account for increased food and incidental costs affecting their daily lives,” she implored.